B&M profit and revenue rise despite ‘challenging’ year
The bargain retailer ran into some issues in homeware and its German business.
Bargain retailer B&M posted another year of profit and revenue growth, despite issues in its German business and a weak period for homeware sales.
Group profit before tax increased by 8.7% to £249.4 million in the 52 weeks to March 30.
Revenues were up 17.1% to £3.49 billion as the chain added 44 new UK stores and continued plans for overseas expansion.
B&M has again delivered strong results against the challenging backdrop of continued structural change in our industry, rising costs and uncertain times for consumers, demonstrating that its value credentials remain as resonant as ever with customers, whether they need a bargain or just enjoy one Chief executive Simon Arora
In the UK, the B&M-branded stores showed growth of 8.7%. Like-for-like revenue growth was 0.7%, with a boost of 5.8% in the final quarter.
The group said its performance had been tempered by weak performance of homeware in the second and third quarters, which prompted a revamp of the entire category.
Chief executive Simon Arora said: “B&M has again delivered strong results against the challenging backdrop of continued structural change in our industry, rising costs and uncertain times for consumers, demonstrating that its value credentials remain as resonant as ever with customers, whether they need a bargain or just enjoy one.”
The business continued to look abroad, buying up French brand Babou in October.
But in Germany it faced declining profitability at its Jawoll chain, due to its efforts to shift slow-moving stock.
“With most of this costly activity now concluded, the Jawoll team are able to offer its shoppers a more compelling product range, utilising B&M’s approach to limited assortment and directly-sourced product, being the key drivers of our disruptive pricing in the UK,” the company said.
B&M said it would push ahead on bringing its model to the French and German markets over the next two years.
Meanwhile, in the UK another 50 stores are planned for the current financial year. The brand’s expansion has been turbocharged by the availability of retail space following a number of high-profile collapses and restructuring processes.